One Medical, a tech-powered primary care platform, shared its financial results for the fourth quarter and full-year 2020 yesterday amid a press storm that alleges the company has been vaccinating ineligible patients.

A report from NPR found that the San Francisco-based company had allowed ineligible patients, including young, healthy people, as well as friends and family of company leadership, to skip the line to get a COVID-19 vaccine.

After reports surfaced, five Bay Area counties cut off their vaccine supply to One Medical, and the San Francisco Department of Public Health sent a letter directing the company to return 1,600 doses of the Pfizer vaccine, according to ABC7.

Amir Dan Rubin, the chairman and CEO of One Medical, addressed the allegations and said “we strongly refute these gross mischaracterizations” in the company’s earnings call Thursday.

“Now in terms of eligibility checking, we have numerous checkpoints in place, including online at the time [of] appointment booking, prior to [the] appointment via schedule scanning process that we do, and in-person verification at the point-of-care,” Rubin said.

“However, it is still possible that some people either misrepresented themselves, abused our trust, or booked outside the specific eligibility criteria for their county even if they are eligible in another adjacent county.”

TOP-LINE

Outside of the claims, One Medical’s financial results for both the fourth quarter and full year of 2020 outperformed its previous reports.

For the full year, the company’s net revenue was $380.2 million, representing a 38% increase from 2019. Net revenue for Q4 2020 came in at $121.8 million, an increase of 57% year-over-year.

By the year’s end, One Medical had a total membership of 549,000, up from 422,000 in Q4 2019.

The company’s adjusted EBITDA for Q4 was positive $11.2 million, and it had a net loss of $8.1 million, or 7% of net revenue. For the full year, the adjusted EBITDA was a loss of $13.9 million, and the net loss was $89.4 million, or 24% of net revenue.

LOOKING BACK

One Medical became a publicly-traded company last year. Rumors started circulating in the fall of 2019 that the company was in talks with JP Morgan and Morgan Stanley about its initial public offering.

At the start of 2020, the rumors proved to be true when it filed for an IPO worth around $100 million. The company hit the markets at the end of last January and was valued at just over $1.7 billion.

Throughout the year, the company grew into new markets including Portland, Oregon; Atlanta; Orange County, California; and Austin, Texas.

It began vaccinating community members of San Francisco at the tail end of 2020, and since then the company has registered as a vaccine provider with more than 30 different jurisdictions, Rubin said during the earnings call.

LOOKING AHEAD

By the end of the first quarter of 2021, One Medical hopes to up its membership to between 590,000 and 600,000. It also is aiming for net revenue of at least $113 million.

For the full year of 2021, the company expects to have a user base of at least 660,000, net revenue in the range of $465 million to $485 million, and an adjusted EBITDA in the range of a loss of $20 million to break-even.

Additionally, it will be launching in new markets this year including Houston; Raleigh and Durham, North Carolina; Milwaukee; and Columbus, Ohio. With that, the company plans to open between 30 and 40 new offices across both new and existing markets.

The company views its ongoing COVID-19 testing and vaccination efforts as “material potential swing factors” that could impact its 2021 revenue, according to Bjorn Thaler, One Medical’s chief financial officer.

ON THE RECORD

“As we reflect on 2020, we had a remarkable first year as a publicly-traded company, made possible by the perseverance and commitment of our incredible team,” Thaler said in the earnings call.

“We are in a unique time to demonstrate the power of our model and increase brand loyalty. We continue to expand our competitive differentiation by expanding our services and the geographies we serve.

"We continue to enable better health outcomes for our members while reducing total healthcare costs, which we believe will provide long-term tailwinds to our revenue and margins. And we equally remain confident that we can deliver the attractive long-term financial targets that we previewed during our IPO.”